Education
About Us
Working with TipRanks
Follow Us
TC Energy (TSE:TRP)
TSX:TRP
Top Page
TC Energy
(TSX:TRP)67Neutral
Positive Factors
Dividend Increase
The quarterly dividend was increased ~3.3% to $0.85/quarter.
Growth Potential
The secured growth program is now ~$25B, indicating robust growth potential.
Negative Factors
Earnings Outlook
TRP expects EPS to be lower than 2024 due to various financial impacts such as increased depreciation rates and higher effective tax rates.
TC Energy (TRP) vs. S&P 500 (SPY)
Market Cap
$67.75B
Dividend Yield6.03%
Average Volume (3M)3.89M
Price to Earnings (P/E)14.7
Beta (1Y)0.81
Revenue Growth5.31%
EPS Growth61.02%
CountryCA
Employees7,415
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)4.43
Shares Outstanding1,039,095,500
10 Day Avg. Volume3,992,138
30 Day Avg. Volume3,892,091
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)N/A
Price to Sales (P/S)4.90
Price to Cash Flow (P/CF)8.10
P/FCF Ratio14.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$73.01Price Target Upside11.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
TC Energy Business Overview & Revenue Model
Company DescriptionCanada-based TC Energy Corporation is an energy infrastructure company. It operates through the following business segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage.
How the Company Makes MoneyTC Energy generates revenue primarily through its extensive network of natural gas and liquids pipelines, which transport these commodities across vast distances. The company earns income by charging fees for the transportation and storage of natural gas and crude oil under long-term contracts, ensuring a stable and predictable cash flow. Additionally, TC Energy owns and operates power generation facilities, contributing to its revenue through the sale of electricity. Significant partnerships with energy producers and utilities, as well as regulatory frameworks that support infrastructure investment, also play a crucial role in the company's earnings.
TC Energy Financial Statement Overview
Summary
TC Energy demonstrates financial stability with solid gross profit margins but faces challenges with revenue volatility and declining EBIT margins. The balance sheet shows manageable leverage, yet the decline in stockholders' equity is concerning. Cash flow stability is hindered by fluctuating free cash flow and a low free cash flow to net income ratio.Income Statement
TC Energy's income statement shows a mixed performance. Gross profit margin is solid, demonstrating cost control, but there is volatility in net profit margins and revenue growth. The recent decline in revenue and EBIT margins suggests potential challenges in maintaining operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage but also a potential risk if revenue declines persist. The equity ratio is reasonable, showing a fair balance between equity and liabilities. However, the decline in stockholders' equity over time is a concern.70
Positive
Cash Flow
Cash flow analysis shows fluctuating free cash flow with periods of negative growth, though operating cash flow remains stable. The low free cash flow to net income ratio highlights challenges in converting income into cash, affecting financial flexibility.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.77B | 15.93B | 14.98B | 13.39B | 13.00B | Gross Profit |
| 6.61B | 7.75B | 6.93B | 6.68B | 6.53B | EBIT |
| 0.00 | 6.86B | 7.28B | 7.25B | 7.00B | EBITDA |
| 11.22B | 8.66B | 5.48B | 6.39B | 8.87B | Net Income Common Stockholders |
| 4.70B | 2.92B | 748.00M | 1.96B | 4.62B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 801.00M | 3.68B | 620.00M | 673.00M | 1.53B | Total Assets |
| 118.24B | 125.03B | 114.35B | 104.22B | 100.30B | Total Debt |
| 59.88B | 63.66B | 58.30B | 52.77B | 49.56B | Net Debt |
| 59.08B | 59.98B | 57.68B | 52.09B | 48.03B | Total Liabilities |
| 79.88B | 86.03B | 80.23B | 70.82B | 66.83B | Stockholders Equity |
| 27.59B | 29.55B | 33.99B | 33.27B | 31.40B |
| Cash Flow | Free Cash Flow | |||
| 1.34B | -881.00M | -352.00M | 966.00M | -1.08B | Operating Cash Flow |
| 7.70B | 7.27B | 6.38B | 6.89B | 7.06B | Investing Cash Flow |
| -6.91B | -12.29B | -7.01B | -7.71B | -6.05B | Financing Cash Flow |
| -3.87B | 8.09B | 487.00M | -88.00M | -800.00M |
TC Energy Technical Analysis
Neutral
65.20
Price Trends
66.38
Negative
66.16
Negative
58.58
Positive
Market Momentum
-0.62
Negative
47.95
Neutral
70.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRP, the sentiment is Neutral. The current price of 65.2 is below the 20-day moving average (MA) of 65.58, below the 50-day MA of 66.38, and above the 200-day MA of 58.58, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 70.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TRP.
TC Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Performance Comparison
TSE:TRP
TC Energy
65.20
18.85
40.67%
ENB
Enbridge
41.60
8.14
24.33%
PBA
Pembina Pipeline
37.72
4.00
11.86%
ATGFF
AltaGas
25.22
4.15
19.70%
TSE:KEY
Keyera Corp.
39.80
7.42
22.92%
FTS
Fortis
43.68
5.00
12.93%
TC Energy Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -2.98% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance for TC Energy in 2024, with significant achievements in safety, asset deployment, and project execution, despite some financial challenges such as higher interest expenses and FX impacts. The sentiment is positive, driven by growth in EBITDA, successful project completions, and dividend increases.Highlights
Best Safety Performance
TC Energy reported the best safety performance in the past five years, contributing to strong operational and financial results.
EBITDA Growth
Comparable EBITDA from continuing operations increased by 6% in 2024 compared to 2023.
Asset and Capital Reductions
Successfully placed $7 billion of assets into service and reduced net capital expenditures by 10%.
Southeast Gateway Project Success
Delivered the Southeast Gateway project 13% below the original budget and reached mechanical completion.
Bruce Power Unit 3 On Track
Bruce Power's Unit 3 Major Component Replacement (MCR) is progressing on cost and schedule.
Record EBITDA and Dividend Growth
Record EBITDA from continuing operations of over $10 billion in 2024 and a 3.3% increase in the quarterly dividend.
Lowlights
Interest Expense and Earnings Impact
Fourth quarter 2024 comparable earnings were 8% lower than the fourth quarter of 2023 due to higher interest expense and other financial factors.
Exchange Rate Impact
The year-end 2024 leverage metric was affected by FX rates, resulting in a 4.8 times debt to EBITDA ratio, although progress was made in deleveraging.
Company Guidance
During TC Energy's fourth-quarter 2024 results conference call, the company highlighted several key metrics and achievements. TC Energy reported a 6% increase in comparable EBITDA from continuing operations compared to 2023, attributing this growth to strong safety performance and strategic operational improvements. The company successfully placed $7 billion of assets into service while reducing net capital expenditures by 10% and identified an additional $1.3 billion of capital reductions planned for 2026 and 2027. TC Energy's natural gas assets set new delivery records, and Bruce Power achieved a 99% availability rate, contributing to a 28% increase in quarterly EBITDA for the Power and Energy Solutions unit. The company also announced a 3.3% increase in its dividend, marking the 25th consecutive year of growth, and provided a 2025 comparable EBITDA outlook of $10.7 billion to $10.9 billion, representing a 7% to 9% year-over-year increase.TC Energy Corporate Events
Financial Disclosures
TC Energy to Announce Q4 2024 Financial Results on February 14
Neutral
Jan 25, 2025
TC Energy announced that it will release its fourth quarter 2024 financial results on February 14, 2025, with a teleconference and webcast scheduled for the same day. This announcement is significant as it provides stakeholders and investors with an opportunity to gain insights into the company’s financial performance and strategic developments, potentially impacting its market positioning and investor confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.